RI EDC lawyer wants 38 Studios trial within a year

PROVIDENCE, R.I. (AP) -- An attorney for the Rhode Island economic development agency that is suing Curt Schilling over the state's failed investment in his video game company said Friday he hopes the case goes to trial within a year, but the former Red Sox pitcher's lawyer will move to have the suit dismissed.

Max Wistow, who represents the state Economic Development Corp. in its effort to recoup some of its investment in 38 Studios, said he hopes the case will move "as expeditiously as possible."

The EDC in November sued Schilling, other 38 Studios executives and some of its own former officials, saying they misled the agency's board into approving in 2010 a $75 million loan guarantee for the company that lured it from Massachusetts to Providence. 38 Studios ran out of money last spring and filed for bankruptcy in June.

The suit alleges that Schilling and others engaged in racketeering and conspiracy. It doesn't ask for a specific dollar amount, but wants Schilling and others to repay the bonds floated on 38 Studios' behalf and seeks triple damages. The state could be on the hook for some $100 million related to the deal, when interest is factored in.

Jeffrey Schreck, a Providence-based lawyer for Schilling, said Friday he will seek to have the suit dismissed.

"I think it's safe to say that all the defendants intend to file motions to dismiss," he told The Associated Press.

Schreck declined to comment further.

Superior Court Judge Michael Silverstein set a March 1 deadline for filing those motions. Lawyers for all the parties were in court before Silverstein on Friday for the first time.

Lawmakers are planning oversight hearings into whether the EDC scrutinized the 38 Studios deal closely enough and whether the loan program under which it got the guarantee should be changed.